2. 109 November 2011 I
Insurance net result affected by
financial turmoil**, Intrinsic
performance remains solid
Group net loss at EUR 534 mio
Strong balance sheet despite
impairments
Highlights 9M 2011*
Excl. negative impact financial turmoil net result
at EUR 406 mio, +22%
Incl. turmoil at EUR 209 mio negative (vs.EUR 334 mio)
Group combined ratio at 101.2%, vs.104.5%
Inflows at EUR 12.9 bn, -6%
Funds under management at EUR 70.2 bn, stable
General Account net loss at EUR 325 mio
EUR 258 mio legacy related charges
Fortis Bank Tier 1 fair value at 80% of par
Insurance solvency ratio resilient at 210%, Group
solvency at 270%
Shareholders’ equity at EUR 3.15 per share
* All 9M11 data are compared to the 9M 10 figures unless otherwise stated
** Financial turmoil defined as the impact of the impairments on equities and fixed income after tax, non-controlling interests and profit sharing
3. 209 November 2011 I
615
334
(209)
406
9M 10 9M 11
646
312
(325)
334
(209)
(534)
9M 10 9M 11
9M 10 FY 10 H1 11 9M 11
Impairment charges cloud the insurance performance
Balance sheet remains strong & stable
Solid Insurance result
In EUR bn In EUR mio
Strong Insurance solvency*, not
impacted by impairments
S-E exposure further reduced
In EUR bn*
Combined ratio stable on H1 Group : General Account volatile
Insurance
General Account
226% 227% 208% 2.89
3.153.19
FY 10 H1 11 9M 11
Shareholders’ equity up
In EUR per share
5.5
3.6
12.9
FY 09 H1 11 9M 11
* at amortized cost, after non-controlling interests
FY 10 H1 11 9M 11
101.2%101.2%107.3%
210%
* Based on regulator’s view
Reported Ins result
Adjusted Insurance result
Impairments Greece & equities
4. 309 November 2011 I
Overview impact impairments on net result
Situation as per 30 September 2011
Greek bonds Equities Total
EUR mio H1 Q3 9M H1 Q3 9M H1 Q3 9M
Belgium Life (117) (332) (449) (19) (67) (86) (136) (399) (535)
Non-Life (8) (13) (21) (2) (7) (9) (10) (20) (30)
Total (125) (345) (470) (21) (74) (95) (146) (419) (565)
UK Life
Non-Life
Total
CEU Life (25) (7) (32) (7) (11) (17) (31) (18) (49)
Non-Life (0) (0) (1) 0 0 0 (0) (0) (1)
Total (25) (8) (33) (7) (11) (17) (32) (18) (50)
Asia Life
Non-Life
Total
Ageas Life (142) (339) (481) (26) (78) (103) (168) (417) (584)
Non-Life (8) (14) (22) (2) (7) (9) (10) (21) (31)
Total (150) (353) (503) (28) (85) (112) (177) (438) (615)
Impairments
*
* Consolidated entities
5. 409 November 2011 I
Key financials 9M 2011
* Based on average number of outstanding shares
** Adjusted for the reclassification of Fortis Luxembourg Vie and Ageas Deutschland to “Assets & Liabilties Held for Sale”
10/03/2010 I page 4
Eur mio 9M 11 9M 10 Q3 11 Q3 10 Q2 11
Gross inflows (EUR bn) 12.9 13.7 (6%) 3.9 4.1 4.2
Net profit Insurance (209) 334 (163%) (320) 153 (24)
Belgium (331) 205 (261%) (354) 117 (59)
UK 62 16 299% 31 7 4
Continental Europe (12) 27 (143%) (15) 10 (14)
Asia 72 86 (16%) 18 19 24
Net profit General Account (325) 312 (204%) (155) 37 118
Net profit attributable Group (534) 646 (183%) (475) 191 95
Funds under management (EUR bn)** 70.2 70.1 0% 70.8
Net shareholders' equity 7,930 9,649 (18%) 7,477
Belgium 2,730 3,508 (22%) 2,234
UK 941 609 55% 859
Continental Europe 862 1,004 (14%) 774
Asia 1,549 1,515 2% 1,398
General Account 1,847 3,013 (39%) 2,213
Net equity per share (EUR) 3.15 3.90 (19%) 2.89
Earnings per share (EUR) * (0.21) 0.26 (181%) *
Net cash (EUR bn) 0.8 2.3 (65%) 2.0
7. 609 November 2011 I
Lower Life inflows, Non-Life up across all segments
Total inflows at EUR 12.9 bn, -6%; Non-Life up 33%
Asia* :
Life : EUR 4.2 bn, -4%
Increased focus on regular premiums
Banks across Asia focus on liquidity & growing deposit base
Non-Life : EUR 0.5 bn, +21%
+20% growth in Malaysia
Continental Europe* :
Life : EUR 1.7 bn, -38%
Portugal, -37% due to macro-economic environment
Luxembourg, -46%, due to lower benefit FoS regulation
Non-Life : EUR 0.4 bn, +21%
Portugal : further up in Healthcare driven by strong Médis brand
Italy : slightly down continuing focus on profitability
Turkey : included since August 11, EUR 66 mio in 2 months
Belgium :
Life : EUR 3.3 bn, -14%
Strong competition from banks in savings
Lower appetite for unit-linked products
Non-Life : EUR 1.3 bn, +5%
Growth outperforms the market
Mix of portfolio growth & tariff increases
UK :
Non-Life : EUR 1.5bn, +86%
Tesco Underwriting : EUR 579 mio YTD
Ageas Insurance : Inflows +15%
Household +29%; Commercial lines +13%
Life : EUR 36 mio, +89%
Increasing market share of Ageas Protect
Other : EUR 207 mio, +71%
Rias, KFFS & Castle Cover drive growth
* incl. Non-controlling interests at 100%
8. 709 November 2011 I
Insurance
Life underlying resilient, Non-Life strongly improved
Net loss of EUR 209 mio (vs. EUR 334 mio positive)
Negative impact financial turmoil of EUR 615 mio, impacting mainly
Belgium & Continental Europe, incl. EUR 503 mio impairment charge
on Greek bonds (EUR 353 mio in Q3)
Life at EUR 288 mio negative (vs. EUR 283 mio positive)
Impairment Greek bonds & equities of EUR 584 mio
Belgium & Continental Europe hit by impairments; Belgium includes
EUR 15 mio for newly introduced State contribution;
Non-Life at EUR 57 mio (vs. EUR 41 mio)
Impairment Greek bonds & equities of EUR 31 mio hitting mainly
Belgium
Strong performance in UK & Asia : EUR 53 mio net contribution
Total 9M 11 adverse weather related costs of EUR 30 mio of which
EUR 12 mio in Q3 11;
Other at EUR 23 mio (vs. EUR 9 mio)
KFIS & Castle Cover contribution of EUR 6.6 mio
EUR 7 mio amortisation costs on intangible assets & EUR 1 million
acquisition and financing costs Castle Cover earlier this year.
EUR mio 9M 11 9M 10
Gross inflow 8,425 9,248
Operating costs 628 588
Technical result 257 374
Operating margin (316) 360
Profit before tax (340) 583
Net profit after tax & non-
controlling interests
(209) 333
Life FUM (EUR bn)* 70.2 70.1
* Adjusted for the reclassification of Fortis Luxembourg Vie & Ageas Deutschland to
‘Assets and Liabilities held for sale’
9. 809 November 2011 I
248 244
2,309 2,075
488
223
780
763
3,824
3,305
9M 10 9M 11
359 362
396 420
370 399
106 113
1,231 1,293
9M 10 9M 11
(14%)
Life
In EUR mio
Non-Life
In EUR mio
Unit-Linked
Savings
Traditional
Other
Fire
Accident & Health
Motor
+5%
Group Life
Belgium
Continued lower inflows in Life, while Non-Life inflows confirm positive trend
Individual Life
YTD down to EUR 2.5 bn vs. EUR 3.0 bn in 2010, due to
lower sales in Unit-Linked and savings products
Bank channel at EUR 2.0 bn YTD, well below last year’s
levels (EUR 2.5 bn) due to competition from banking products
Broker channel at EUR 0.5 bn YTD, -11%, similar trends bank
channel
Group Life
At EUR 0.8 bn YTD, -2%, due to timing differences
Funds under Management
Stable at EUR 48.6 bn vs. end of June 2011
Non UL-linked funds up to EUR 42.6 bn; UL funds down to
EUR 6.0 bn, -7%
Property and Casualty (Fire, Motor & others)
Inflows up 5%, all product lines contributing well, especially
Fire (+8%) and Motor (+6%)
Growth driven by a combination of tariff increases and
portfolio growth
Accident & Health
Health Care +1% driven by new production & medical
indexation impact
10. 909 November 2011 I
Belgium
Impairments cloud Life performance; Intrinsic performance Non-Life on track
10/03/2010 I page 9
Net profit at EUR 331 mio negative (vs. EUR 205 mio)
9M 11 impairment charge on Greece & equities of EUR 565
mio of which EUR 419 mio in Q3
9M 11net profit excluding impairments on Greek sovereigns at
EUR 139 mio
Positive evolution Non-Life performance confirmed despite
adverse weather impact August storms in Fire
Strong IFRS Solvency ratio at 176 %
Life at EUR 329 mio negative (vs. EUR 186 mio)
9M 11 impairment charge on Greece & equities of EUR 535
mio of which EUR 398 mio in Q3
Life FUM at EUR 48.6 bn, +2% vs. 2010, stable vs. end of
June
Non-Life at EUR 2 mio negative (vs. EUR 19 mio)
9M 11 impairment charge on Greece & equities of EUR 30 mio
of which EUR 21 mio in Q3
Net impact adverse weather events of August of EUR 12 mio;
9M 11 impact of EUR 18 mio
Further improvement Motor and strong performance Health;
Fire withheld by impact August storms
EUR mio 9M 11 9M 10
Gross inflow 4,598 5,055
Operating costs 343 329
Technical result 198 284
Operating margin (364) 223
Profit before tax (495) 378
Net profit after tax & non-
controlling interests
(331) 205
Life FUM (EUR bn) 48.6 47.9
11. 1009 November 2011 I
61.6 63.6 64.9 66.5
37.4 36.7 35.9
99.0% 100.3% 100.8% 103.1%
107.4% 105.6% 103.3%
71.0 69.366.3
36.4
36.836.336.8
2006 2007 2008 2009 2010 9M 10 9M 11
Combined ratio AG Insurance FY 06 – 9M 11
Belgium, combined ratio improved on last year
Improvement thanks to sound technical performance in Motor and Liability
Expense ratioClaims ratio
Strong Motor and Health performance
Excluding Workmen’s Compensation, Combined Ratio at
100.3% YTD vs.102.5%
Motor segment further improved to 94.9% YTD (Q3 11 at
91.4%)
Fire combined ratio at 111.5% YTD with August storms as
main factor explaining a Q3 combined ratio of 119.7%
Solid claims result in Health (combined ratio at 96.1%)
Workmen’s Compensation remains high at 128.0%; Q3 11 at
122.8%. Weak performance still related to exceptional high
number of deceased and permanent disability claims.
Corrective set of measures taken
Non-Life implements new tariff increases as of 1st January
2012, including a Natural Catastrophe tariff increase
representing a premium growth of 6% in the Fire portfolio
Motor : review of material damage offer implemented as from
January 2011 is paying off
Workmen's Compensation: on going corrective measures
including a new tariff structure and pruning of portfolio
12. 1109 November 2011 I
821
1,523
840
1,559
36
19
9M 10 9M 11
52 56
445
982207
352
118
133
821
1,523
9M 10 9M 11
Motor
United Kingdom
Inflow levels substantially increased
Non-Life
Life
Other
Property
Accident & Health
+85%
+86%
Total
In EUR mio
Non-Life
In EUR mio
* including other income
Life
Successful roll out of its proposition across the IFA
market (7.8% market share)
Launch of new distribution partnerships
175,000 customers, up 69% on Q3 2010
Non-Life
Up 85%, driven by successful launch of Tesco
Underwriting partnership & organic growth in both
Commercial and Personal lines
Within Personal lines, Household +29%; Private car and
Travel slightly up (excl. Tesco)
Commercial lines +13%, growth resulting from
expanding product range via brokers
Partnership with Tesco Bank started underwriting as of
mid October 2010; Inflows of EUR 680 mio & 1.4 mio
customers in year 1
Other Insurance (including Retail)
YTD total income of EUR 207 mio up 71%;
Acquisition Castle Cover late March 2011 will further
strengthen Retail capability & add together with KFIS an
extra 1 mio customers
13. 1209 November 2011 I
United Kingdom
Better overall financial performance despite exceptional claims in Household
10/03/2010 I page 12
Net result at EUR 62 mio (vs. EUR 16 mio)
Improved performance overall but especially in private Motor
Robust return from Retail activities
Life at EUR -1.3 mio (vs. EUR -2.8 mio)
Continued progress in roll-out of protection business; 7.8% market
share among IFAs end Q3
Non-Life at EUR 40 mio (vs. EUR 9 mio)
Improved Motor result through positive impact of management
actions
9M 11 impact adverse weather events of EUR 12 mio, related to
adverse weather events end 2010
Other Insurance at EUR 23 mio (vs. EUR 9 mio)
Strong commission income and partnership growth
KFFS & Castle Cover contributed EUR 6.6 mio, including EUR 7 mio
amortisation of intangible assets & acquisition and financing costs
Castle Cover earlier this year
EUR mio 9M 11 9M 10
Gross inflow 1,559 840
Operating costs 119 85
Technical result 43 (1)
Operating margin 48 2
Profit before tax 90 19
Net profit after tax & non-
controlling interests
62 16
14. 1309 November 2011 I
UK, continued improvement confirmed
Continental Europe and Asia remain below 100%
Expense ratioClaims ratio
Combined ratio UK FY 06 – 9M 11
UK : continued positive impact from corrective
measures
Improved overall combined ratio at 99.9% including Tesco
Underwriting
Motor : Selected tariff increases in 2010 in line with underlying risk
led to an improved combined ratio (98.2% vs 106.9% at 9M 10)
Household : combined ratio at 100.4%, PY loss ratio of 5.8%;
continued improvement quarter on quarter (Q1 11 121.9%; H1 11
104.4%; 9M 10 98.9%).
Travel : combined ratio for 9M 11 (106.3%) improved from 9M10
(122.0%) due to management actions over the last 12 months and
Volcanic ash event in 2010
Continental Europe: 97.5% vs. 99.0% (9M10)
Portugal : combined ratio at 93.3% vs 90.5% in 9M10
Italy : first impact of implemented corrective measures
noticeable
Asia : 93.0% vs 96.2% (9M10)
70.2
79.7
73.1
28.2
27.7
28.8
27.7 28.0
29.5
26.4
98.4%
107.4%
101.9%
108.1% 109.5%
104.9%
99.9%
73.5
80.4 75.481.5
2006 2007 2008 2009 2010 9M 10 9M 11
15. 1409 November 2011 I
174 185
77
107
45
5730
44326
394
9M 10 9M 11
194 162
1,086
276
1,418
1,161
93
92
2,791
1,691
9M 10 9M 11
Life
Portugal, -37% : Difficult economic environment continues,
inflow level evolution in line with Portuguese market.
Remains domestic market leader based on FuM with 26%
share
Luxembourg, -46% : related to lower sales of FOS (Freedom
of Services) product benefiting less from European Savings
Directive but also in line with market
France, -21% : decrease due to disappearance distribution
network Fortis Banque France & worsening market
Unit-linked business sales EUR 1.2 bn, Savings products at
EUR 0.3 bn
Funds under Management
At EUR 14.1 bn vs. EUR 23.1 bn end 10; Luxembourg &
Germany reclassified into ‘Held for Sale’
FuM down 7%, following lower inflows & negative market
value adjustment
Non-Life
GWP up 23% year-to-date, thanks to first time inclusion
Turkey (EUR 66 mio)
Portugal : +3% thanks to strong performance Healthcare
(Médis), in a stagnating market amidst economic uncertainty
Italy :almost unchanged with last year, focus on increasing
profitability in Motor remains;
+23%
Accident & Health
Motor
Unit-Linked
Savings
Traditional
Group
(-38%)
Other
Fire
Life
In EUR mio
Non-Life
In EUR mio
Continental Europe
Inflows impacted by adverse evolution financial markets
16. 1509 November 2011 I
Continental Europe
Net profit impacted by impairments; underlying performance remains strong,
particularly in Non-Life
10/03/2010 I page 15
Net result at EUR 12 mio negative (vs. EUR 27 mio
positive)
Life at EUR 17 mio negative (vs. EUR 22 mio)
9M11 impairment charge on Greek bonds & equities of EUR 50
mio of which EUR 18 mio in Q3
Additional losses realized on sale equities & fixed income
Operating costs further down on continued streamlining insurance
portfolio
Non-Life at EUR 6 mio (vs. EUR 5 mio)
Operating margin +46% driven by better technical performance &
higher financial income
Operating costs +8%
Net result Turkey (AKsigorta) : EUR 1.2 mio (2 months
contribution)
EUR mio 9M 11 9M 10
Gross inflow 2,020 3,116
Operating costs 140 146
Technical result (4) 76
Operating margin (22) 81
Profit before tax (9) 99
Net profit after tax & non-
controlling interests
(12) 27
Life FUM (EUR bn)* 14.1 23.2
* Adjusted for the reclassification of Fortis Luxembourg Vie and Ageas Deutschland to “Assets & Liabilities Held for Sale”
17. 1609 November 2011 I
** MAT: Marine Aviation & Transport
Asia
Stable commercial performance, very close to last year’s record first quarter
Life
Hong Kong, +5%, Solid growth of 23% in new business on APE
basis, following improved productivity in agency channel and
growth in emerging IFA channel.
China, -7%, Because of new banca regulations and monetary
tightening, last year’s single premium campaign was not
repeated this year. Good persistency resulted in strongly
increased renewal premiums, compensating for the shortfall in
single premiums. Regular premium up 29% vs 9M 2010.
Malaysia, -25%, Lower single premiums in wake of monetary
tightening. Regular premiums up+4%
Thailand, +33%, Continued strong growth in both bank and
agency channel
India, -6%, New business down 29% following regulatory
changes. Renewals up 35%
Funds under Management
Hong Kong : EUR 1.4 bn,+2% vs. end 10
Incl. partnerships (at 100%): EUR 18.5 bn, +9% vs. end 10
Non-Life
Malaysia, +22%, driven by Motor and Corporate MAT** lines.
Thailand, +17%, across all lines and distribution channels.
179
3,8253,969
217173 133
18 3
Q3 10 Q3 11
251
288
134
176
Q3 10 Q3 11
(4%)
Non-Motor*
Motor
Savings
Group
Traditional
* Non-motor includes Fire, MAT, Accident & Health and other lines
Life
Non-Life
In EUR mio
In EUR mio
4,340 4,178
+21%
385
464
Unit-Linked
18. 1709 November 2011 I
10/03/2010 I page 17
EUR mio 9M 11 9M 10
Gross inflow* 248 237
Operating costs 27 28
Technical result 19 16
Operating margin 22 54
Profit before tax* 74 87
Net profit after tax & non-
controlling interests*
72 86
Life FUM (EUR bn)** 1.4 1.3
Net profit of EUR 72 mio (vs. EUR 86 mio)
9M10 net profit included EUR 35 mio capital gains on sale of Fortis
Centre in Hong Kong; 9M11 net profit includes EUR 10 mio capital
gains on disposal of Taiping Pension
Hong Kong : Net profit slightly down on a comparable basis
Non-consolidated partnerships : EUR 61 mio vs. EUR 39 mio,
driven by organic growth and non-recurring items
Life net profit at EUR 59 mio (vs. EUR 78 mio)
Hong Kong : EUR 19 mio vs. EUR 56 mio;
Excl. last year’s EUR 35 mio capital gain on sale of Fortis
Centre, net result is -6%, due to strong new business growth
and impacted by adverse markets and currency rates
Non-consolidated partnerships : EUR 49 mio vs. EUR 30 mio;
+60%, driven by EUR 10 mio capital gains from disposal
Taiping Pension & organic growth.
Regional costs : stable at EUR 8 mio.
Non-Life net profit at EUR 13 mio (vs. EUR 8 mio)
Relates to operations in Malaysia and Thailand.
Both the intrinsic operational performance and technical results
remained strong, plus tax recoveries in Malaysia (EUR 3 mio).
Asia
Net profit significantly up on a comparable basis
* Including Inflow (100%) & Profit (Ageas share) from partnerships respectively
**** Including partnerships, FUM increased to EUR 18.5 bn
19. 1809 November 2011 I
Investment portfolio at fair value on 30 September 11
Equity investments down, other asset classes fairly stable
Investment portfolio (EUR 59.5 bn) Fixed Income
No major shifts in composition
90% portfolio rated A or higher, 94% investment
grade
Gross unrealized gains amounted to EUR 1.4 bn
vs. EUR -0.6 bn end of June
Equities
Down to EUR 1.7 bn (vs. EUR 2.6 bn end of June)
following divestments and lower fair value
Gross unrealized loss of EUR 24 mio (pre-tax)
Real Estate
Gross unrealized gains slightly up to EUR 1.2 bnSovereign bonds
55%
Real Estate
7%
Equities
3%
Corporate
bonds
34%
Structured Credit Inst
1%
Gross unrealized gains on total investment
portfolio of EUR 2.6 bn
As at 30 September 2011
20. 1909 November 2011 I
Government bonds EUR 33.0 bn Corporate bonds EUR 20.1 bn
Investment portfolio : Fixed Income at EUR 53.5 bn at fair value
Situation as per 30 September 2011
Gross unrealized gains before tax and shadow accounting
(UCG) of EUR 0.9 bn vs EUR (0.5) bn end 2010
Disposal of S-E government bonds mainly reinvested in
Belgium & The Netherlands
Gross unrealized gains of EUR 0.5 bn
Quality of corporate bond portfolio remains high with 95%
investment grade, 84% rated A and 62% rated AA or AAA
Banking/ Other financials : 80% single A or higher; 57% rated
AA or higher; no single position > EUR 0.3 bn
Hybrid securities: down to below EUR 0.6 bn* Classified partly as ‘Available for Sale’ and partly as ‘Held to Maturity’
Austria
2.5
Banking
5.0
Other
corporates
4.9
Other financials
1.7
Government related
8.5
Greece
0.6
Belgium
14.0
Spain
1.1
Italy
2.0
Germany
2.7
The
Netherlands
1.6
Portugal*
1.0
France
4.3
Ireland
0.5
Others
2.7
21. 2009 November 2011 I
3.2
6.2
2.6
2.5
1.7
1.4
1.3
1.2
0.8
2.1
0.8
0.7
0.6
(0.8)(0.2)
1.4
1.3
1.3
FY09 H1 10 H1 11 9M 11
Impairment Greece Italy Spain Portugal
Exposure on Southern European sovereigns further reduced
…Exposure at amortized cost and after non-controlling interests of EUR 3.6 bn
Exposure on S-E souvereigns at amortized cost ,
after impairments and non-controlling interests
further reduced to EUR 3.6 bn
Additional reduction of primarily Italian & Spanish
sovereigns since end June 11 of EUR 1.3 bn
Net exposure (after non-controlling interests) at fair
value of EUR 3.2 bn
Additional gross impairment on Greek sovereigns
of EUR 754 mio based on fair value in Q3 on entire
portfolio
Q3 11 net impact of EUR 353 mio (after
profit sharing, tax and non-controlling
interests)
9M 11 net impact of EUR 503 mio
Net of impairments, Greek bonds held at 38% of
historical/amortized cost.
12.9
5.5
3.6
6.1
In EUR bn
22. 2109 November 2011 I
10/03/2010 I page 21
Equity funds
0.1
Equities
0.8
Mixed funds & others
0.2
Real Estate funds
0.6
Investment portfolio : Equities at EUR 1.7 bn at fair value
Situation as per 30 September 2011
Equity investments at amortized cost down to EUR 2.0 bn vs. EUR 2.6 bn end of June
(vs. EUR 2.3 bn end 10) due to divestments and lower fair value of equities and equity funds
Limited unrealized loss (EUR 24 mio) vs. EUR 108 mio unrealized gains end of June
(vs. EUR 139 mio gain end 10)
Net impairment charge of EUR 112 mio taken in Q3 following declining equity markets
Ageas’ impairment policy of equities
If fair value <75% of average purchase
price of the particular equity
OR
If fair value is consistently below the
purchase price during 4 quarters
Equity portfolio (EUR 1.7 bn)
23. 2209 November 2011 I
General Account
Negative net result driven by EUR 258 mio legacy related charges
Net loss of EUR 325 mio driven by legacy issues
RPN(i) liability at EUR 145 mio
EUR 320 mio positive impact on 9M fair value RPN(I) liability,
driven by decreased market price CASHES (from 50% to 33%)
Positive quarterly impact of EUR 438 mio
Equity value RPI at EUR 850 mio, down EUR 83 mio
Net 9M result EUR 315 mio negative (EUR 140 mio Ageas’s
share)
Revaluation interest rate swaps lead to a EUR 128 mio positive
result at RPI at 100%, accounted via equity (EUR 57 mio for
Ageas)
Call option BNP Paribas shares valued at EUR 361 mio
Down EUR 248 mio vs. FY 10 ( down EUR 333 mio vs. end
June) mainly due to lower BNP Paribas share price (EUR 30.05
vs. EUR 47.68)
Additional fair value adjustment of EUR 150 mio
on Fortis Tier 1 Debt Securities
9M11 impact of EUR 190 mio; Securities valued @ 80% of par
accounted under “Loans & receivables”
Other items
Net interest margin of EUR 9 mio negative
Operating expenses slightly down to EUR 38 mio
EUR mio 9M 11 9M 10
Net interest income (9) (10)
Capital gains (130) (224)
Result of associates (139) 183
Change in impairments
& provisions
(0) 1
Total expenses (38) (40)
Profit before tax (326) (97)
Net profit after tax & non-
controlling interests
(325) 312
Balance sheet items 9M 11 FY 10
RPI 850 933
Call option BNP Paribas 361 609
RPN(I) (145) (465)
Tier 1 760 -
Net cash/deposits 827 2,210
24. 2309 November 2011 I
General Account
Composition of the net result remains very diverse and volatile
Net profit
Q3 11 : EUR (155) mio
In EUR mio
(83)
(140)
(150)
(190)
(333)
(248)
438
320
(27)
(67)
9M 11 : EUR (325) mio
In EUR mio
Other items
RPN(i)
Tier 1 provision
Call option BNPP
RPI
Sum of legacy issues:
EUR (128) mio
Sum of legacy issues:
EUR (258) mio
25. 2409 November 2011 I
Balance sheet value
In EUR bn
Net result impact
In EUR mio
Valuation Call option BNP Paribas shares at 30 September 2011
Value down mainly due to lower BNP Paribas share price
-6.8%-10.4%Dividend yield +1%
+3.75%+11.9%Dividend yield -1%
-24.6%-26.3%Implied volatility -5%
+25.8%+26.7%Implied volatility +5%
9M 11H1 11Sensitivities
Valuation
EUR 66.672
5.29%
33%
EUR 47.69
FY 10
Strike price/share
Dividend yield
Volatility
BNP share price
Model parameters
(Black & Scholes)
EUR 66.672
4.95%
30%
EUR 53.23
H1 11
EUR 66.672
8.76%
49%
EUR 30.05
9M 11
85
(248)
(271)
FY 10 H1 11 9M 11
694
361
609
FY 10 H1 11 9M 11
26. 2509 November 2011 I
(118)
273
320
(149)
27
20
FY 10 H1 11 9M 11
Net result impact
Balance sheet value
In EUR bn
In EUR mio
Valuation RPN(I) as at 30 September 2011
Fair valuation liability down on lower market price CASHES
Valuation
57.8%
410 bps
41%
4.3%
EUR 1.87
H1 11
33.2%
685 bps
69%
6.1%
EUR 1.31
9M 11
Price CASHES (% of par)
Discount rate
Share price volatility
Dividend yield
Ageas’s Share price
Assumptions
Detailed sensitivity analysis
- EUR 97 mioPrice CASHES from 33% 23%
+ EUR 88 mioPrice CASHES from 33% 43%
9M 11Sensitivities
Guarantee Belgian State Value RPN(i)
See IFS Q3 2011
Variance Cashes price
Higher spreads
Other
(501)
(127)
(66)
(82)(465)
(583)
(399)
(18)
(145)
FY 10 H1 11 9M 11
27. 2609 November 2011 I
Ageas’s equity Value Net book value assets RPI*
In EUR bn
In EUR bn
In EUR bn In EUR bn
Principal & interest collections
In EUR mio
Fair value - IFRS
Valuation items Royal Park Investments as at 30 September 2011
Equity value down on lower marked-to-market value
Net result impact – part Ageas
In EUR mio
Commercial paper Other Senior + Super Senior
Principal collections Interest collections* Net book value = Economic recovery value as of 31 December 31 under B-GAAP, 2010
minus Redemptions until September 30, 2011
(57)
(140)
131
FY 10 H1 11 9M 11
6.6
6.4
7.0
FY 10 H1 11 9M 11
581
919
169
71
1,709
6521,540
112
1,031
FY 10 H1 11 9M 11
4.3 4.6
2.5
1.8
7.1
6.1
4.6
1.6
6.2
FY 10 H1 11 9M 11
8.8
9.1
10.0
FY 10 H1 11 9M 11
899
850
933
FY 10 H1 11 9M 11
Outstanding debt
28. 2709 November 2011 I
Financial implications at 30 September 2011
Discretionary capital
Solvency
Net cash General
Account
Net result
Ageas acquired Fortis Bank Tier1 Debt Securities
95% of outstanding debt acquired at par, fair value at 80%
Background
In 2001, Fortis Bank SA/NV issued a EUR
1 bn subordinated Tier 1 securities* with a
support agreement granted by Fortis
parents (now Ageas)
Tier 1 securities included incentives to call
at first call date (year 10): a 100 bps step-
up feature and, via the support
agreement, holders could exchange par
amount for stock ( ageas shares) if not
called
Events in 2011
27/28 April: Ageas AGM does not grant authorized shares for the support, only exchange in cash possible
27 May : Non-call Fortis Bank SA/NV
18 August : NBB grants consent to exchange securities for cash
H1 11 : Ageas records EUR 40 mio provision for difference par value versus fair value
26 September : Ageas acquires EUR 953 mio Tier 1 securities which yield at 3m-EURIBOR + 237 bps after first call
date; call possible at every quarterly coupon
30 September : Ageas records EUR 150 mio additional charge to reflect estimated fair value
Financial instrument accounted at fair value
Fair value estimated at +/- 80% of nominal value
(incl. illiquidity premium (8%))
Total charge of EUR 190 mio at 30 September
95% of outstanding debt acquired
at par, cash out EUR 953 mio
Besides P&L charge, not affected
Concept replaced by net cash position as of Q3
* 6.5% Redeemable Perpetual Cumulative Coupon Debt Securities
29. 2809 November 2011 I
0.08.28.0Liabilities held for sale0.08.48.2Assets held for sale
17.1
2.2
1.3
0.6
0.5
2.4
1.6
0.3
H1 11
17.1
0.4
0.7
0.9
0.3
2.4
1.6
0.0
2.4
H1 11
9.5
2.5
1.3
0.6
0.7
2.4
1.7
0.5
Q4 10
9.5
0.5
0.6
0.9
0.7
2.4
1.7
0.0
2.7
Q4 10
In EUR bn
0.2RPN(I)
15.9
1.9
1.3
0.2
2.4
1.6
0.3
9M 11
15.9
0.4
0.4
0.9
0.1
2.4
1.6
0.8
1.1
9M 11
Tier 1 debt securities
Net equity
FRESH
Other
Provision Dutch State
NITSH I, II & Hybrone
ST (EMTN )
Liabilities
Loan to operating cies
Balance sheet total
Call option on BNP P shares
Royal Park Investments
Other
Claim ABN AMRO Bank
Due from Fortis Bank & AG Ins
Cash & Deposits at banks
Assets
Cash position of the General Account
As per Q3 11, discretionary capital concept abandoned
9M 11 evolutions:
Net cash at EUR 0.8bn, down on acquisition Tier 1 Debt
securities (EUR 1.0bn), acquisition AKSigorta (EUR 0.2bn)
dividend payments (EUR 0.1bn) and other (EUR 0.1bn).
Q3 11 evolutions:
Decrease net cash due to acquisition Tier 1 Debt
Securities (EUR 1.0bn), acquisition AKSigorta (EUR
0.2bn) and share buy-back programme (EUR 0.1bn)
30. 2909 November 2011 I
(170)
8,247
7,477
7,928
7,477
(358)
(320) (155)
(92)
(197)
(157)
126
111
892
0
FY
10NetresultInsurance
NetresultG
eneralAccount
Change
unrealized
gains
Dividend
Foreign
exchange
&
O
ther
H1
11NetresultInsurance
NetresultG
eneralAccount
Change
unrealized
gains*
Buy-back
Foreign
exchange
&
O
ther
9M
11
FY 10 H1 11 9M 11
EUR 3.19 EUR 2.89 EUR 3.15
Shareholders’ equity / share
Shareholders’ equity up to EUR 7.9 bn vs. H1 11
Improved unrealized gains on investment portfolio
* including charge related to reclassification of Portuguese sovereigns as ‘Held to Maturity’
Shareholders’ equity by segment
Belgium : EUR 2,730 mio
Continental Europe : EUR 862 mio
United Kingdom : EUR 941 mio
Asia : EUR 1,549 mio
General Account : EUR 1,846 mio
31. 3009 November 2011 I
Ageas announced a share buy-back programme on 24 August
Ageas currently owns 4.6% of its outstanding shares
Buy-back programme of up to EUR
250 mio of its outstanding shares
Buy-back programme launched as of
24 August
For a period ending 23 February 2012
Independent broker mandated to execute
the programme
Shares to be held as treasury shares
until further notice
On 30 September, Ageas bought back
69 mio shares (2.62%)
As per 4 November, Ageas acquired
120 mio shares for a total amount of
EUR 158 mio (corresponding to 4.6% of the total
amount of outstanding shares)
32. 3109 November 2011 I
3.9
2.2
0.8 1.0 1.2
6.9
3.4
2.1
3.4
0.3
0.5
0.4
9.3
0.3
7.2
Total available capital
Solvency remains well above required minimum
Impact fixed income valuation on Belgium & CE, Tesco inclusion on UK
* Under local Asian solvency regulation, different valuation rules apply leading to a solvency ratio for AICA of 468% end of March 11.
Required Regulatory minimum
Insurance General Ageas
Excess capital Account
EUR 3.7 bn EUR 2.1 bn EUR 5.9 bn
176% 230%
Solvency Ratio
Actual / Min Actual / Min Actual / Min Actual / Min Actual / Min Actual Actual / Min
Belgium United Continental Asia Insurance General Ageas
Kingdom Europe Account
*
201% 310% 210%
End September 2011
270%
Consolidation adjustments
33. 3209 November 2011 I
7.2 7.2
0.7
3.4
0.9 0.9
7.6
(0.2)
(0.9)
net impact of stress
test on solvency ratio
combining theoretical
losses on sovereign bonds:
70% on all Greek
50% on all Portuguese & Irish
30% on all Italian & Spanish
Total available capital
Ageas’s Insurance solvency ratio resilient
Buffer unrealized gains can absorb impact severe stress tests
Required Minimum Margin (RMM)
210% Solvency Ratio 210%
Based on data end of September 11
Actual
EUR 3.7 bn excess capital
Actual Minimum
completely absorbed
by buffer of
unrealized gains
Filters:
EUR 0.7 bn revaluation
investment property
(EUR 0.9 bn) revaluation
AFS investments
(EUR 0.2 bn) other
Insurance
total equity
Regulatory
capital
34. 3309 November 2011 I
Insurance
Net results marked by impairments following recent
events in financial markets
Intrinsic performance remains solid
Excluding impairments, performance up vs. last
year
Group
Volatility due to accounting impact legacy issues
remains
Earlier 2011 result outlook not maintained
Inflows : close to 2010 levels
Result : impact impairments & uncertainty financial
markets make it difficult to provide updated 2011
forecast
Conclusions
35. 3409 November 2011 I
Financial Calendar 2012
30 April
Ex-dividend date
– Start dividend
election period
25 April
Annual
shareholders’
meeting
Brussels
20 February
Annual results 2011
26 April
Annual
shareholders’
meeting
Utrecht
14 May
3M results 2012
31 May
Payment 2010
dividend
21 May
End of dividend
election period
6 August
6M results 2012
7 November
9M results 2012
36. 3509 November 2011 I
Disclaimer
Certain of the statements contained herein are statements of future
expectations and other forward-looking statements that are based
on management's current views and assumptions and involve
known and unknown risks and uncertainties that could cause actual
results, performance or events to differ materially from those
expressed or implied in such statements. Future actual results,
performance or events may differ materially from those in such
statements due to, without limitation, (i) general economic
conditions, including in particular economic conditions in Ageas’s
core markets, (ii) performance of financial markets, (iii) the
frequency and severity of insured loss events, (iv) mortality and
morbidity levels and trends, (v) persistency levels, (vi) interest rate
levels, (vii) currency exchange rates, (viii) increasing levels of
competition, (ix) changes in laws and regulations, including
monetary convergence and the Economic and Monetary Union, (x)
changes in the policies of central banks and/or foreign
governments and (xi) general competitive factors, in each case on
a global, regional and/or national basis.
In addition, the financial information contained in this presentation,
including the pro forma information contained herein, is unaudited
and is provided for illustrative purposes only. It does not purport to
be indicative of what the actual results of operations or financial
condition of Ageas and its subsidiaries would have been had these
events occurred or transactions been consummated on or as of the
dates indicated, nor does it purport to be indicative of the results of
operations or financial condition that may be achieved in the future.
